Why We Plan: The Impact of Nascent Entrepreneurs’ Cognitive Characteristics and Human Capital on Business Planning


We examine the impact of nascent entrepreneurs’ cognitive attributes and human capital on business planning behavior. We find that entrepreneurial self-efficacy facilitates development of formal business plans and entrepreneurial perseverance promotes engaging in business planning activities. Further, advanced academic education leads nascent entrepreneurs to engage in business planning activities and create formal business plans, but prior work experience has a marginal effect on business plan formality. The results further indicate that a nascent entrepreneur’s striving for outside financing promotes business planning activities, while being in a supportive environment or a member of a business association does not impact business planning behavior. Copyright © 2015 Strategic Management Society.

Journal or Publication:
Strategic Entrepreneurship Journal
Authors:
Jan Brinckmann
Sung Min Kim
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Status:
publish
Year Published
2015
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